12 Key Diagrams for AS Microeconomics
The effect of the tax depends on the price elasticity of demand & supply for the good tutor2u : 12 Key Diagrams for AS Economics (Microeconomics) www.tutor2u.net 3) A Government Subsidy to Producers A government subsidy encourages an increase in supply at each price level because the subsidy provides a reduction in a firm’s costs of production. The extent of the subsidy per unit is shown by ... ................
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